Markit's final Manufacturing Purchasing Managers' Index (PMI) for the euro zone fell to 50.3 in September from August's 50.7 and lower than earlier estimates of 50.5.

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The figure marks a 14-month low for the region, as input costs and selling prices were both lower than in previous months.

"September's euro zone PMI makes for gloomy reading. The euro area's manufacturing economy has lost the growth momentum seen earlier in the year, lurching closer to stagnation," said chief economist at Markit, Chris Williamson.

"The near-term outlook also looks worrying. Order books are now deteriorating for the first time since June of last year, suggesting output could start to fall as we move into the final quarter of the year," he said.

Along with Germany, Greece's factory activity contracted at the fastest rate in almost a year with Markit's PMI reading for the country coming in at 48.4, down from 50.1 in August.